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Mobile wallets continue to gain popularity among consumers, but they’re struggling to gain wide-spread adoption amidst a market of competing platforms. A survey by Trustev showed that only about 20% of compatible iPhone users and 14% of compatible Galaxy users have ever used the mobile payment feature on their phone.

So what’s holding people back? According to recent reports, the top challenges facing mobile wallet adoption are fear of identity theft (68%) and merchant acceptability (33%). But, as security technology continues to improve and more and more merchants upgrade their POS systems, we expect these concerns to dwindle in the not-so-distant future.

With each new mobile payment platform launch, the payment landscape is gaining complexity. To help you get up-to-speed on the latest and greatest in mobile wallets, we’ve provided a comprehensive list of the current options and the pros and cons of each platform.

Apple Pay

Arguably the most popular mobile wallet platform to-date, Apple Pay, is a payment system that allows users to make purchases via their smartphone by hovering it near an NFC-enabled credit card terminal.

Pros: Apple Pay is accepted at more than 700,000 retail locations and is supported by 2,500 banks and credit card issuers. Transactions made through Apple Pay are tokenized, which maximizes data security. A fingerprint scanning feature also boosts security.

Cons: The provisioning process for adding a payment card to an Apple Pay account lacks security, which is causing credit card thieves to turn to this platform to make fraudulent purchases. Additionally, Apple Pay is not accepted at Wal-Mart.

Android’s answer to Apple Pay, Android Pay is a similar platform in which users can make payments from their smartphones to an NFC-enabled terminal.

Pros: By the end of the year, Android Pay is expected to be accepted at just as many stores as Apple Pay (more than 700,000) as well as in a large number of apps. The platform, powered by Google, also uses the secure payment process of tokenization.

Pros: Users are able to make mobile payments at terminals that are not NFC-enabled. The phones are equipped with technology that allows them to be “swiped” like a magnetic stripe card, making Samsung Pay is the most widely accepted mobile wallet.

Cons: The magnetic stripe feature doesn’t always work as well as intended.

Compatible Devices: Samsung Galaxy S6 and Samsung Note5 or later

Chase Pay

JP Morgan Chase has partnered with MCX and is expected to launch a new mobile wallet platform, Chase Pay, in mid-2016. Instead of using NFC technology like its competitors, Chase Pay will generate a unique QR code for each transaction that the cashier can scan.

Pros: Not all terminals are equipped with NFC technology, so the fact that this platform uses QR codes will significantly increase its acceptability. Additionally, since Chase has partnered with MCX, the wallet may have an edge with retailers who are resisting Apple Pay, such as Wal-Mart, Target, Best Buy and Shell.

Cons: The QR code process may not be as simple and efficient as competing NFC methods.

Compatible Devices: The app is expected to work with most Android and Apple phones

On top of these mobile wallets, other digital platforms, such as Snapchat and Facebook, now enable users to send money via personal message. With this rapid expansion of digital and mobile payment capabilities, the near future of the payment industry holds a lot of promise for change and growth. Stay tuned on the latest industry trends by following Abtek on Facebook, Twitter and LinkedIn.

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Tami Cohorst, our vice president, was recently featured on PaymentsSource, a global online resource for all things payment-related. Take a look at what she had to say about the future of mobile payments, according to data collected from social media:

Mobile payments are quickly becoming an integral part of consumers’ daily lives. In order for businesses to stay competitive, it’s important for them to stay on top of the trends in the industry.

Social media is an important way to accomplish that. It has emerged as a major influence on the mobile payment processing landscape. Payment service providers, financial institutions and merchants are monitoring online conversations and developing processes and technology based on what consumers want in terms of mobile payment experiences.

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With Apple Pay and similar technology becoming the norm and customers warming up to mobile wallets in droves– approximately 28 percent of smartphone users made a mobile payment last year–many merchants may need to think deeper about how mobile wallets can double as marketing strategy.

The most obvious reason why merchants offer mobile loyalty programs is to give customers incentives to return their businesses. But there are a number of other perks, including:

Customer retention is always good for boosting the bottom line, but studies have shown that a mobile loyalty program can also boost extra sales among loyalty customers. Kohl’s loyalty customers, for example, average two additional trips to the store and spend $80 more than non-loyalty customers over the course of a year. Plus, mobile loyalty programs require less operational management than a paper-based program, which will ultimately lead to reduced operational costs.

Stand Out From the Crowd

Loyalty programs are an excellent way to differentiate yourself—and having a mobile loyalty program gives you an even bigger edge in the marketplace. Consider what your competitors are doing for their loyalty programs and figure out a way to make yours even better!

VIP Treatment

Consumers want their experiences to be enjoyable and they want to feel as though they’re valued. Loyalty programs help to make both of these criteria possible. They open the door for more communication between the retailers and the customers during checkout. Loyalty programs also give loyal customers rewards for their patronage, making them feel appreciated.

So, What’s Next?

The next step in mobile loyalty programs, according to experts, will be to integrate them with leading mobile wallet providers. Up until this point, consumers have been forced to use mobile loyalty programs within each store’s individual apps. In the near future, we can expect to see these wallets begin to not only implement store loyalty programs, but ultimately become a platform for integrated, real-time marketing.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

Payment security is at an all time low and as a result, the payment industry is in process of getting a much-needed overhaul. With this rapid implementation of new rules, processes and technology, there are a lot of payment processing buzzwords that have recently entered into the industry vernacular.

As a business owner, you’re busy with your day-to-day operations, so keeping up on the latest payment processing news and trends is probably not at the top of your priority list. However, as these changes could eventually impact your business, it’s never been more important for you to be in the know.

To help you stay updated, we’ve compiled the following glossary of industry buzzwords for your quick reference.

EMV / Chip-and-Pin

EMV is the future of credit card processing, although it’s not exactly so futuristic anymore. If you’re not already aware of the EMV payment revolution happening in the United States, you can read up on the basics here. In a nutshell, over the course of the next few months, banks will begin to roll out new credit cards in an effort to phase out insecure magnetic stripe technology. These cards will be embedded with microprocessor chips that will allow for more secure transactions. But the benefits of these “EMV” or “chip-and-pin” cards won’t come to fruition unless business owners take action now and update their payment terminals.

PCI Compliance

PCI compliance is a term often shrouded in myths and misconceptions, but it isn’t all that confusing once you break it down. PCI is a set of 12 requirements that all merchants, no matter the size or industry, must meet to ensure a secure environment for credit card transactions. If you’re not sure what’s required of your business in order to establish compliance, you’ll want to check in with your merchant services provider or visit the Security Standards Council website.

NFC

Near field communication (NFC) is the technology that enables wireless data transfers between two devices in close proximity, without the need for an internet connection. Think of it like modern-day Bluetooth. Today’s smartphones are embedded with NFC technology to allow for consumers to make payments directly from their phones by simply tapping or waving their devices over an NFC terminal.

Apple Pay

Apple Pay is a mobile application that is sweeping the nation. Essentially, the application allows consumers to transform their phones into mobile wallets by syncing credit card information from their iTunes accounts. Consumers can simply wave or tap their phones over an NFC terminal (currently available at numerous retailers across the globe) to make a purchase.

Tokenization

When a credit card is swiped through a terminal set up for tokenization, the card’s Primary Account Number (PAN) is automatically substituted with a randomly generated sequence, called a token. Merchants can use this token to handle refunds, returns and manage other transaction details. The benefit? Tokenization takes sensitive payment card data out of the picture for merchants, eliminating the need to store the data on their networks and the risk of a data breach.

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Mobile wallets aren’t just on the horizon—they’re already here. Recent smartphone applications have facilitated consumer technology capable of making instant purchases, and the trend may replace commonplace wallet purchasing within the next five years.

Mobile Wallets: The Pros

Credit card processing is quick, and it’s reliable. However, mobile wallets—when created and utilized effectively—are incredibly convenient for consumers. Mobile wallets are incredible marketing tools, too, due to their incredible accessibility and mobile purchasing’s increasing popularity. Mobile wallets propose a slew of benefits for consumers, including:

Ease of accessibility

Consolidation of funds

Immediate coupons and savings

Customer reward programs

The above mention of mobile-accessed coupons is considerably important. An Inmar Solutions trend catcher has depicted an astounding 2.9 billion digital coupon redemption volume. Additionally, approximately 77 percent of shoppers purchased groceries from non-grocer vendors in 2013. Due to a mobile wallet’s wide market accessibility, some of the world’s most vital markets will likely hook into the trend.

Mobile Wallets: The Cons

With great accessibility comes high responsibility, and the mobile wallet may propose several problems for future consumers. Merchant services still aren’t accustomed to the change—and several providers may never be.

Additionally, the mobile wallet’s incredible accessibility may pose a problem for some spenders. If you could make a purchase with one quick tap to the phone, wouldn’t you? The following cons also exist within the evolving technology, and it may hold mobile wallets back from their full potential:

Consolidation of existing technology may cause bugs

Security risks from hacking

Access to high-limit purchases may be imbalanced against credit cards

The infamous cellphone hack scandal in the UK definitely plays upon the above worries. Easy banking accessibility may enable thievery and digitally-stored credit card information may not be safe.

It Isn’t Over for Traditional Payments, Either

In fact, mobile wallets rely upon pre-existing monetary exchange systems. Small businesses can definitely profit from the mobile wallet’s design and functionality, but they’ll need to maintain classic systems and policies to take full advantage of the technology.

You’ll Still Need Your Wallet

Mobile wallets can’t just replace fundamental wallet contents. Your driver’s license, registration, insurance card and other important, physical documentation are still required by law. Likely, mobile wallets will never accommodate for such provisions. Simply put: Security, legality and accessibility are important—more-so than a consumer’s ease-of-access to retail spheres. Regardless of a mobile wallet’s capabilities, their boundaries end where life’s other priorities begin.

In many ways, the world still needs physical proof of monetary funds, legal accessibility, health information and other important items. Mobile wallets will definitely play an integral role in retail’s future, but, for now, the leather bi-fold wallet still has a place in your back pocket…and for good reason.

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Cash-only businesses may seem lucrative in terms of quick payments, bookkeeping and simplicity, but an all-cash standard may incur a heftier expense: Customers.

Cash-only businesses thrive from cash-drawer-reliant setups, and boosting a start-up business’s potential on a cash-only platform may reduce professional downtime. However, several revealing statistics have shed light upon the trend. Credit card processing has become the new standard—and for good reason.

The Out-Cashed Consumer

Modern consumers utilize credit and debit cards to close a majority of their purchases, with cash becoming infrequent among shoppers. Statistica: The Statistics Portal revealed an astonishing 7.2 percent of shoppers were all-cash-buyers in the U.S. in August 2014. The trend may be capable of hindering businesses reliant on the cash drawer.

Nobody likes inconvenience, and consumers unable to make easy credit card payments may feel alienated. Exchanges may be written off as an interaction worthy of any preference, but the following sales options are hindered by an all-cash system:

Individual-based returns

Loyalty programs

On-account returns

Additionally, customers, it seems, are instantly deterred from all-cash payments upon entering a retail atmosphere. Credit card processing is considered a modern commodity within retail realms, and a consumer unable to access what they perceive as a holistic buying experience may turn away from prospective purchases altogether.

Retailer applications capture five times more engagement than non-mobile providers

Increasing mobile trends and heightened technology will likely deliver a new era of retail purchasing. Unfortunately, cash-only businesses may be behind the curve due to massive inaccessibility to such mobile platforms.

Besides consumers strictly “not wanting to pay cash” out of principle, a business operating away from mobile accessibility may appear “shady”, or even “untrustworthy” in modern retail realms. Linking a reliable mobile application—or even a company website—to user accounts promotes a stable, sustainable consumer community.

Cash Volume and Increased Risk

Understandably, security expenses are important. While maintaining an expansive credit and checking system may be expensive, losing money due to theft dominates a store’s potential losses.

Maintaining an all-cash location is considerably more dangerous than utilizing a digital payment system. Modern security technology and information technology solutions are incredibly effective, and provided security measures often provide more than enough coverage to protect an aspiring company.

The Modern Purchasing Standard

Excess cash is also a security risk for the consumer. Additionally, the consumer aversion to carrying around large sums of cash may further limit an all-cash business’s revenue capabilities. A consumer limited to cash is similarly limited to the amount their willing to carry on them. Few people walk around with enough cash to make large-sum transactions.

Security reasons aside, however, the world’s retail atmosphere is evolving towards digitalization, and all-cash businesses may be behind. After all, as companies grow and become more relevant, they’ll likely garner competitors. Feasibility is a consumer benefit, and a consumer may opt to purchase a competitor’s product when a quick card scan or swipe is available.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.